Florida Property & Casualty Agent Licensing
(20-44) – Florida Department of Financial
Services (DFS) – Verified Exam Questions and
Answers (Complete Exam Material)
INTRODUCTION .
This comprehensive practice examination is designed for candidates preparing for the
Florida Insurance 20-44 (Property & Casualty Agent) Licensing Exam for the current
licensing cycle. The 20-44 license authorizes the holder to sell property, casualty, and
surety insurance in Florida.
Licensing Information:
• License Type: 20-44 (Property & Casualty Agent)
• Regulatory Authority: Florida Department of Financial Services (DFS) – Division of
Insurance Agent and Agency Services
• Governing Statutes: Florida Statutes Chapters 624, 626, 627, 631; Florida
Administrative Code Rule 69O
• Pre-licensing Education: 200 hours (40 hours law & ethics, 160 hours general
P&C)
• Exam Format: Multiple-choice, scenario-based (150 questions)
• Passing Score: 80% or higher
• License Validity: Biennial (2 years)
• Continuing Education (CE): 24 hours every 2 years (including 5 hours law &
ethics, 3 hours NFIP flood, 3 hours federal flood law)
This examination reflects all current Florida Insurance 20-44 licensing requirements
and Florida Statutes. Each question includes the correct answer and a detailed rationale
with statute references to support exam readiness.
Section 1: Florida Insurance Laws and Regulations (Questions 1-25)
Q1: The Florida agency responsible for regulating insurance companies and rates is the:
A. Florida Department of Financial Services (DFS) B. Office of Insurance Regulation (OIR)
,C. Division of Insurance Agent and Agency Services D. Florida Surplus Lines Service
Office (FSLSO)
[CORRECT] B. Office of Insurance Regulation (OIR)
Rationale:
• The Office of Insurance Regulation (OIR) is responsible for regulating insurance
companies, rates, policy forms, and solvency (F.S. 624.308)
• DFS handles agent licensing, consumer services, and investigations (F.S. 624.307)
• The Division of Insurance Agent and Agency Services is part of DFS, handling
licensing matters only
Q2: A Florida 20-44 (Property & Casualty) agent license must be renewed every: A. 1
year (annually) B. 2 years (biennially) C. 3 years D. 4 years
[CORRECT] B. 2 years (biennially)
Rationale:
• Florida agent licenses are valid for 2 years (biennial) and must be renewed before
expiration (F.S. 626.381)
• Late renewal requires continuing education compliance and payment of late fees
• Licenses expire on the last day of the licensee's birth month every two years
Q3: A Florida 20-44 licensed agent must complete how many continuing education (CE)
hours per biennium, including specific subject requirements? A. 12 hours total (any
subjects) B. 20 hours total (including 3 hours law & ethics) C. 24 hours total (including 5
hours law & ethics, 3 hours NFIP flood, 3 hours federal flood law) D. 30 hours total
(including 10 hours law & ethics)
[CORRECT] C. 24 hours total (including 5 hours law & ethics, 3 hours NFIP flood, 3
hours federal flood law)
Rationale:
• Florida requires 24 CE hours per biennium (F.S. 626.3815, F.A.C. 69O-186.010)
• Must include: 5 hours of law and ethics (3 hours Florida law, 2 hours ethics), 3
hours of NFIP flood, and 3 hours of federal flood law
• Remaining 13 hours may be in any insurance subject matter
Q4: An insurer must appoint a licensed agent within how many days of the agent
submitting an application? A. 15 days B. 30 days C. 60 days D. 90 days
[CORRECT] D. 90 days
,Rationale:
• An insurer must appoint an agent within 90 days of the agent submitting a
completed license application (F.S. 626.931)
• DFS must be notified within 30 days of termination of appointment
• Appointment is required before the agent can transact business for that insurer
Q5: A property & casualty agent in Florida may be disciplined for which of the
following? (Select all that apply) A. Misrepresentation of policy terms B. Twisting
(inducing lapse of policy for replacement without benefit) C. Rebating (giving premium
kickbacks) D. All of the above
[CORRECT] D. All of the above
Rationale:
• Florida law prohibits misrepresentation (F.S. 626.9541(1)(a)), twisting (F.S.
626.9541(1)(b)), rebating (F.S. 626.9541(1)(h)), coercion, boycott, intimidation,
false financial statements, and unfair claim settlement practices (F.S. 626.9541)
• Penalties include administrative fines up to $5,000 per violation ($20,000 for willful
violations), license suspension, or revocation (F.S. 626.9571)
Q6: Which of the following entities provides protection to policyholders when a Florida
property & casualty insurer becomes insolvent? A. Florida Life and Health Insurance
Guaranty Association B. Florida Insurance Guaranty Association (FIGA) C. Citizens
Property Insurance Corporation D. Florida Hurricane Catastrophe Fund
[CORRECT] B. Florida Insurance Guaranty Association (FIGA)
Rationale:
• FIGA provides protection for policyholders of insolvent property and casualty
insurers (F.S. 631.50 et seq.)
• Coverage limits apply: $300,000 for unearned premium, $300,000 for covered
claims, $500,000 for workers' compensation claims
• Life and Health Guaranty Association covers life/health insurers (separate entity)
Q7: Under Florida law, an insurer must report the termination of an agent's appointment
for cause to the DFS within: A. 10 days B. 15 days C. 30 days D. 45 days
[CORRECT] C. 30 days
Rationale:
, • Insurers must report termination of agent appointments within 30 days (F.S.
626.931(4))
• "For cause" terminations involve violations of law, regulation, or agency contract
• Agents have the right to request a hearing to contest termination for cause
Q8: The Chief Financial Officer (CFO) serves as the head of which Florida insurance
regulatory agency? A. Office of Insurance Regulation (OIR) B. Florida Department of
Financial Services (DFS) C. Financial Services Commission D. Office of Financial
Regulation
[CORRECT] B. Florida Department of Financial Services (DFS)
Rationale:
• The CFO heads the Department of Financial Services (F.S. 624.305)
• DFS oversees agent licensing, consumer protection, fraud investigation, and
financial regulation of certain entities
• OIR is headed by the Insurance Commissioner (appointed by Financial Services
Commission)
Q9: A licensed 20-44 agent must maintain records of insurance transactions for how
many years? A. 2 years B. 3 years C. 5 years D. 7 years
[CORRECT] C. 5 years
Rationale:
• Agents must maintain complete records for 5 years from the date of the transaction
(F.A.C. 69O-186.004)
• Records include applications, policies, endorsements, cancellation notices, and
correspondence
• Records must be available for inspection by DFS upon request
Q10: Which of the following is NOT a requirement for obtaining a Florida 20-44
Property & Casualty agent license? A. Be at least 18 years old B. Complete 200 hours of
pre-licensing education C. Be a resident of Florida D. Pass the state licensing
examination
[CORRECT] C. Be a resident of Florida
Rationale:
(20-44) – Florida Department of Financial
Services (DFS) – Verified Exam Questions and
Answers (Complete Exam Material)
INTRODUCTION .
This comprehensive practice examination is designed for candidates preparing for the
Florida Insurance 20-44 (Property & Casualty Agent) Licensing Exam for the current
licensing cycle. The 20-44 license authorizes the holder to sell property, casualty, and
surety insurance in Florida.
Licensing Information:
• License Type: 20-44 (Property & Casualty Agent)
• Regulatory Authority: Florida Department of Financial Services (DFS) – Division of
Insurance Agent and Agency Services
• Governing Statutes: Florida Statutes Chapters 624, 626, 627, 631; Florida
Administrative Code Rule 69O
• Pre-licensing Education: 200 hours (40 hours law & ethics, 160 hours general
P&C)
• Exam Format: Multiple-choice, scenario-based (150 questions)
• Passing Score: 80% or higher
• License Validity: Biennial (2 years)
• Continuing Education (CE): 24 hours every 2 years (including 5 hours law &
ethics, 3 hours NFIP flood, 3 hours federal flood law)
This examination reflects all current Florida Insurance 20-44 licensing requirements
and Florida Statutes. Each question includes the correct answer and a detailed rationale
with statute references to support exam readiness.
Section 1: Florida Insurance Laws and Regulations (Questions 1-25)
Q1: The Florida agency responsible for regulating insurance companies and rates is the:
A. Florida Department of Financial Services (DFS) B. Office of Insurance Regulation (OIR)
,C. Division of Insurance Agent and Agency Services D. Florida Surplus Lines Service
Office (FSLSO)
[CORRECT] B. Office of Insurance Regulation (OIR)
Rationale:
• The Office of Insurance Regulation (OIR) is responsible for regulating insurance
companies, rates, policy forms, and solvency (F.S. 624.308)
• DFS handles agent licensing, consumer services, and investigations (F.S. 624.307)
• The Division of Insurance Agent and Agency Services is part of DFS, handling
licensing matters only
Q2: A Florida 20-44 (Property & Casualty) agent license must be renewed every: A. 1
year (annually) B. 2 years (biennially) C. 3 years D. 4 years
[CORRECT] B. 2 years (biennially)
Rationale:
• Florida agent licenses are valid for 2 years (biennial) and must be renewed before
expiration (F.S. 626.381)
• Late renewal requires continuing education compliance and payment of late fees
• Licenses expire on the last day of the licensee's birth month every two years
Q3: A Florida 20-44 licensed agent must complete how many continuing education (CE)
hours per biennium, including specific subject requirements? A. 12 hours total (any
subjects) B. 20 hours total (including 3 hours law & ethics) C. 24 hours total (including 5
hours law & ethics, 3 hours NFIP flood, 3 hours federal flood law) D. 30 hours total
(including 10 hours law & ethics)
[CORRECT] C. 24 hours total (including 5 hours law & ethics, 3 hours NFIP flood, 3
hours federal flood law)
Rationale:
• Florida requires 24 CE hours per biennium (F.S. 626.3815, F.A.C. 69O-186.010)
• Must include: 5 hours of law and ethics (3 hours Florida law, 2 hours ethics), 3
hours of NFIP flood, and 3 hours of federal flood law
• Remaining 13 hours may be in any insurance subject matter
Q4: An insurer must appoint a licensed agent within how many days of the agent
submitting an application? A. 15 days B. 30 days C. 60 days D. 90 days
[CORRECT] D. 90 days
,Rationale:
• An insurer must appoint an agent within 90 days of the agent submitting a
completed license application (F.S. 626.931)
• DFS must be notified within 30 days of termination of appointment
• Appointment is required before the agent can transact business for that insurer
Q5: A property & casualty agent in Florida may be disciplined for which of the
following? (Select all that apply) A. Misrepresentation of policy terms B. Twisting
(inducing lapse of policy for replacement without benefit) C. Rebating (giving premium
kickbacks) D. All of the above
[CORRECT] D. All of the above
Rationale:
• Florida law prohibits misrepresentation (F.S. 626.9541(1)(a)), twisting (F.S.
626.9541(1)(b)), rebating (F.S. 626.9541(1)(h)), coercion, boycott, intimidation,
false financial statements, and unfair claim settlement practices (F.S. 626.9541)
• Penalties include administrative fines up to $5,000 per violation ($20,000 for willful
violations), license suspension, or revocation (F.S. 626.9571)
Q6: Which of the following entities provides protection to policyholders when a Florida
property & casualty insurer becomes insolvent? A. Florida Life and Health Insurance
Guaranty Association B. Florida Insurance Guaranty Association (FIGA) C. Citizens
Property Insurance Corporation D. Florida Hurricane Catastrophe Fund
[CORRECT] B. Florida Insurance Guaranty Association (FIGA)
Rationale:
• FIGA provides protection for policyholders of insolvent property and casualty
insurers (F.S. 631.50 et seq.)
• Coverage limits apply: $300,000 for unearned premium, $300,000 for covered
claims, $500,000 for workers' compensation claims
• Life and Health Guaranty Association covers life/health insurers (separate entity)
Q7: Under Florida law, an insurer must report the termination of an agent's appointment
for cause to the DFS within: A. 10 days B. 15 days C. 30 days D. 45 days
[CORRECT] C. 30 days
Rationale:
, • Insurers must report termination of agent appointments within 30 days (F.S.
626.931(4))
• "For cause" terminations involve violations of law, regulation, or agency contract
• Agents have the right to request a hearing to contest termination for cause
Q8: The Chief Financial Officer (CFO) serves as the head of which Florida insurance
regulatory agency? A. Office of Insurance Regulation (OIR) B. Florida Department of
Financial Services (DFS) C. Financial Services Commission D. Office of Financial
Regulation
[CORRECT] B. Florida Department of Financial Services (DFS)
Rationale:
• The CFO heads the Department of Financial Services (F.S. 624.305)
• DFS oversees agent licensing, consumer protection, fraud investigation, and
financial regulation of certain entities
• OIR is headed by the Insurance Commissioner (appointed by Financial Services
Commission)
Q9: A licensed 20-44 agent must maintain records of insurance transactions for how
many years? A. 2 years B. 3 years C. 5 years D. 7 years
[CORRECT] C. 5 years
Rationale:
• Agents must maintain complete records for 5 years from the date of the transaction
(F.A.C. 69O-186.004)
• Records include applications, policies, endorsements, cancellation notices, and
correspondence
• Records must be available for inspection by DFS upon request
Q10: Which of the following is NOT a requirement for obtaining a Florida 20-44
Property & Casualty agent license? A. Be at least 18 years old B. Complete 200 hours of
pre-licensing education C. Be a resident of Florida D. Pass the state licensing
examination
[CORRECT] C. Be a resident of Florida
Rationale:
